Nucor BY tgw925 Nucor has many strength’s that lie within the company lines. They are the industry leader in innovation and minimization of pollution and production cost. They make sure to take each and every step necessary in order to reduce the exposure of pollutants to the atmosphere. This gives the company a lot of credibility in that it is not only worried about itself, but also its surroundings. Nucor is a calculated risk taking culture so they are not quick to Jump the gun on any specific task.
They assure hat what they are doing is in best interest for the company as well as others in order to maximize profit and satisfy customers. Being a large firm gives Nucor more bargaining power when it comes to upcoming contracts. Their size and well-being gives them more of an advantage, making the people contracting out feel safe about their final decision on who they give rights to their work. Some weaknesses that exist within the company are high dependence on US domestic marker as well as limited diversification and no worldwide presence. Nucor relies solely on what the US market eeds.
If there is a low demand on steel products, this means that Nucor has to cut back on production and can only supply what is needed. If they did not cut back on production, this would lead to excess inventory which would cause them to store capital in the form of products which would not be producing them any revenue. Limited diversification takes place because Nucor is an American made product that only provides their finished goods to US consumers. There is a large target market for them outside of the country but they stand strong when it comes to their buyers.
Nucor has numerous amounts of opportunity when it comes to growth. Entering the steel business in the Asia-Europe markets through Joint venture possesses potential growth and development. Joint venture is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They could also lean towards horizontal integration in order to improve market position. Creating new necessary products for the US consumers could grow the business from more than it is today.
Some of the threats that Nucor faces are the ising of raw material as well as demand declining in US Real estate. If the price of steel were to go up, Nucor would be forced to pay more for the materials they need in order to produce the products they do today for the US consumers. In reality, they could increase their prices on finished goods in order to compensate for the sacrificed loss, but that would be a decision to be made in upper management. The decline in US real estate is also a potential threat to Nucor. If buildings aren’t being made, the large amount of steel that is needed in todays economy won’t be ecessary.
This will cut down the demand of supply provided by the company. Nucor is faced with many factors when it comes to the external environment it is placed in. They support US Government’s Climate Vision program which seeks to voluntarily lower greenhouse emissions in the US without sacrificing economic growth. In 1990 Kyoto Protocol called for a 7% reduction in greenhouse gas emissions in the next 22 years and they had achieved the outstanding amount of 28% reduction by 2005. This fgure surpassed Kyotds target percentage by 240%.